WEBVTT - Universal Music Up, Erste Rises, Puig Surges

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Stephen Carroll with Lizzie Burdon, and

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<v Speaker 3>we're joined by Bloomberg reporter Chloe Meda for more. Chloe,

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<v Speaker 3>good morning. Let's start with Universal Music Group subscription revenue

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<v Speaker 3>growing more than expected. What's going on?

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<v Speaker 1>Oh yeah, reported revenue ahead of expectations for the third quarter,

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<v Speaker 1>and that's thanks to two things in particular. So the

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<v Speaker 1>omnipresident Taylor Swift with really strong sales of her latest album,

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<v Speaker 1>and then also a really strong performance of the soundtrack

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<v Speaker 1>album for the hit next flip Netflix film k POB

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<v Speaker 1>Demon Hunters, which I've not seen, but apparently it was

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<v Speaker 1>really huge, and so that really boosted the shares this morning.

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<v Speaker 1>After quite an uneven performance over the last few months.

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<v Speaker 1>Universal is in quite an interesting position of having to

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<v Speaker 1>adapt to this to the music industry created by AI,

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<v Speaker 1>of course, so instead of fighting against it, it's actually

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<v Speaker 1>decided to join forces with an AI music startup to

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<v Speaker 1>collaborate on a new music creation and streaming service which

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<v Speaker 1>essentially will automate that music making process with a tool

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<v Speaker 1>that is trained on license music from artists. So it's

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<v Speaker 1>doing that. It's also signed a partnership with Spotify to

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<v Speaker 1>develop what it has called a responsible AI products that

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<v Speaker 1>respect artists copyright. So something definitely to watch going forward

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<v Speaker 1>because all of that is really likely to reshape the

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<v Speaker 1>music industry in quite significant ways, and labels have to

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<v Speaker 1>find a way to protect themselves against those AI songs

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<v Speaker 1>taking that market share.

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<v Speaker 3>Yeah, that's really interesting. I've also not watched KPARP Demon Hunters,

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<v Speaker 3>but I have listened to a very long podcast discussing

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<v Speaker 3>Life of a shell Girl, so I feel fully up

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<v Speaker 3>to date on the cultural analysis of Taylor Sola this album.

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<v Speaker 2>Absolutely no shame there from Star Carl. I want to

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<v Speaker 2>take it right to say for Territory Bank Earnings erst

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<v Speaker 2>raising its outlook for a year, and of course they's

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<v Speaker 2>out of Austria.

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<v Speaker 3>One of the updates from them.

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<v Speaker 1>Yeah, so they raise their net interest income and their

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<v Speaker 1>capital guidance this morning, which moved the shares higher, with

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<v Speaker 1>analysts noting that a strong capital position and also improving

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<v Speaker 1>profitability for US, so it's essentially building up its capital

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<v Speaker 1>cushion to help it fund the acquisition of Santandre's operations

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<v Speaker 1>in Poland. So this is a deal that was announced

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<v Speaker 1>in May. It's buying those Polish operations for about seven

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<v Speaker 1>billion euros, which makes it its largest deal ever. So

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<v Speaker 1>it's looking to pay for the transaction with a few

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<v Speaker 1>different ways, so with internal fund so by retaining earnings

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<v Speaker 1>and also temporarily reducing payouts to investors. But then it's

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<v Speaker 1>also freeing up capital by ufloading risks related to a

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<v Speaker 1>corporate loan portfolio that's worth more than ten billion euros.

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<v Speaker 1>So it seems that the plan to fund that acquisition

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<v Speaker 1>is being taken quite well by investors, even though it

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<v Speaker 1>does it does involve for having to reduce some payouts.

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<v Speaker 1>The net interest income guidance boost is also quite reassuring

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<v Speaker 1>and it really confirms that lending volumes are quite strong

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<v Speaker 1>in markets like Czechia and Slovakia as well. So it's

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<v Speaker 1>overall quite a positive update from ASTA and that really

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<v Speaker 1>moved the shats this morning.

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<v Speaker 3>Finally, Chloe, we're going to talk about Peak reporting better

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<v Speaker 3>than expected third quarter sales.

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<v Speaker 1>Yeah, so that is a Spanish company and Catalan company

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<v Speaker 1>that makes perfumes.

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<v Speaker 3>And that's that wrong.

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<v Speaker 1>Well, I think it's pooche, but checked. I checked this morning.

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<v Speaker 1>But I mean, I do not trust me on that.

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<v Speaker 1>I have no clear idea, but yeah.

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<v Speaker 3>You're right, Catalan versus Nish pronunciation anyway.

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<v Speaker 1>Yea. So it makes perfumes and makeup and reported better

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<v Speaker 1>than expected sales and it also upgraded the guidance for

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<v Speaker 1>the last three months of the year, so it said

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<v Speaker 1>it at actually a really solid start to the fourth quarter,

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<v Speaker 1>which obviously is the most important quarter for those kinds

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<v Speaker 1>of companies. And the update also suggested a potential rebound

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<v Speaker 1>in the fragrance's segment, which is very welcome after quite

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<v Speaker 1>a bit of weakness in that particular division. It's a

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<v Speaker 1>really important one because it's got quite a much higher

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<v Speaker 1>margin than that makeup and skincare segments that are growing

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<v Speaker 1>much faster. That recovery there in those perfumes is a relief.

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<v Speaker 1>Some ane lists did say that the company did not

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<v Speaker 1>address any questions about the growth beyond twenty twenty five,

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<v Speaker 1>but for now, investors seem to be happy with the

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<v Speaker 1>positive twenty twenty five performance.

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